Spotify Slows Down On Hiring Amid Macro Uncertainties

Spotify Technology S.A. SPOT slowed hiring by 25%, CNBC reports based on a companywide email from CEO Daniel Ek.
However, he added the company would “continue to still hire and grow, we are just going to slow that pace and be a bit more prudent with the absolute level of new hires over the next few quarters.”
Spotify had ~8,230 employees globally at Q1-end.
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Previously, during an investor conference, CFO Paul Vogel alerted about monitoring the global economy and evaluating its headcount growth in the near term.
Spotify had also predicted that its investments in podcasting and audiobooks would fuel growth over the next decade, Reuters reported.
Streaming giants like Netflix, Inc NFLX, which had a great run during the pandemic, are now facing the heat following recovery and surging inflation rates which have restricted consumer spending.
Several big names, from PayPal Holdings, Inc PYPL, Warner Bros. Discovery, Inc WBD to Alibaba Group Holding Limited BABA, have undergone significant restructuring to beat the macro uncertainties.
Wells Fargo analyst Steven Cahall upgraded his rating on Spotify subject to certain conditions.
Price Action: SPOT shares closed higher by 7.4% at $105.31 on Wednesday.
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